Bhubaneswar: In order to support MSME units in Odisha and compensate their losses during pandemic situation, Chief Minister Naveen Patnaik approved a package of Rs 289.42 crore for the sector.
The package includes a number of assistance measures such as interest subvention, top-up subsidy, reimbursement of State GST and waiver of annual institutional maintenance charges.
As per a statement issued by the Chief Minister’s Office (CMO), the move will benefit a range of entrepreneurs, mostly women and weaker sections of society, in the MSME sector to recover from the unexpected challenges by the Covid-19 pandemic.
Under the Emergency Credit Line Guarantee Scheme (ECLGS), around 1,70,000 MSME units will reap the benefit of interest subvention. The Government will provide an interest subvention for the MSMEs with one year moratorium.
“A sum of Rs 108.29 Crore is being released with a focus to cover 40 percent of eligible women run MSMEs,” the statement added.
Under the Prime Minister’s Employment Generation Programme (PMEGP) for the 2020-21 financial year, the top-up subsidy to weaker sections is 5% as promoters’ contribution as per the prescribed norm. An amount of Rs 27 crore has been provisioned to meet the requirement.
This will help in a big way to weaker section including SC/ST/OBC/Minority Community/Women/Physically challenged/Ex-Servicemen during the pandemic crisis.
For the food processing units functioning under the Prime Minister’s Formalization of Micro Food Processing Enterprises Scheme (PMFME), a Central-sponsored Scheme, will be given 15% extra top-up subsidy to cover around 1,000 unit for the current financial year. The State government will spend Rs10 crores towards top up subsidy under the scheme.
The COVID-19 Assistance Package (CAP) launched by the Panchayati Raj and Drinking Water Department will bring relief to nano and micro Enterprises. Currently, assistance to the tune of Rs 100 crore will be made available through Women SHG members.
“As per the recently amended IPR approved by the State Cabinet, as many as 175 enterprises will be eligible for reimbursement of State GST for the period from July 1, 2017 to March 31, 2020. Under this proposal, a sum of Rs. 38.30 crore will be disbursed,” the CMO statement added.
The annual institutional maintenance charge payable by MSMEs to IDCO which comes around Rs 5.83 crore in respect of 5,000 MSMEs in various industrial estates has been waived. As per the decision, IDCO will bear the annual institutional maintenance charge.